Vysya Bank

completed

Vysya Bank was established in 1930 by a group of entrepreneurs from the trading (vysya) community based in and around Bangalore, India. The bank, with over 400 outlets, has a strong retail franchise, based in southern India, as well as presence in other parts of the country. The ING Group recently increased its equity stake in the Vysya Bank from 10% to 20% with the objective of strengthening its strategic alliance and business synergies in the areas of trade and corporate finance, retail banking, mutual funds, and insurance. Vysya Bank is refocusing its strategy to meet the challenges coming from the deregulation of the banking industry and to position itself as an integrated financial services provider. IFC''s proposed investment will assist Vysya Bank in its plan to raise its technology platform, a key factor for increasing the competitiveness of Indian banks. Additionally, IFC together with the ING Group, will play an important role in institution building through the adoption of cautious operating policies and guidelines, and the strengthening of risk management and credit control and monitoring mechanisms. IFC''s presence in a well managed, established, private commercial bank, that is going through a transition, and the support to the bank''s technological upgrading and strengthening of its overall corporate governance, will have a strong demonstration effect on the Indian banking sector.